Academic journal article Federal Reserve Bulletin

United Bankshares, Inc. Charleston, West Virginia

Academic journal article Federal Reserve Bulletin

United Bankshares, Inc. Charleston, West Virginia

Article excerpt

Order Approving the Acquisition of a Bank Holding Company, the Merger of Banks, and the Establishment of Branches

FRB Order No. 2017-10 (April 6, 2017)

United Bankshares, Inc. ("UBI"), Charleston, West Virginia, and its subsidiary, UBV Holding Company, LLC ("UBV", and together with UBI, "United"), Fairfax, Virginia, both bank holding companies within the meaning of the Bank Holding Company Act of 1956 ("BHC Act"), (1) have requested the Board's approval under section 3 of the BHC Act (2) to acquire Cardinal Financial Corporation ("Cardinal") and thereby indirectly acquire Cardinal Bank, both of McLean, Virginia.

In addition, United's subsidiary state member bank, United Bank ("United Bank-Virginia"), Fairfax, Virginia, has requested the Board's approval under section 18(c) of the Federal Deposit Insurance Act ("Bank Merger Act") to merge with Cardinal Bank, with United Bank-Virginia as the surviving entity (3) United Bank-Virginia also has applied under section 9 of the Federal Reserve Act ("FRA") to establish and operate branches at the main office and branches of Cardinal Bank. (4)

Notice of the proposal, affording interested persons an opportunity to submit comments, has been published (81 Federal Register 74803 (October 27, 2016)). (5) The time for submitting comments has expired, and the Board has considered the proposal and all comments received in light of the factors set forth in section 3 of the BHC Act, the Bank Merger Act, and the FRA. As required by the Bank Merger Act, a report on the competitive effects of the merger was requested from the United States Attorney General, and a copy of the request has been provided to the Federal Deposit Insurance Corporation ("FDIC").

UBI, with consolidated assets of approximately $14.3 billion, is the 99th largest insured depository organization in the United States. (6) UBI controls approximately $10.6 billion in consolidated deposits, which represent less than 1 percent of the total amount of deposits of insured depository institutions in the United States. (7) UBI controls two subsidiary banks, United Bank-Virginia and United Bank, Inc. ("United Bank-West Virginia"), Parkersburg, West Virginia, (8) which operate in the District of Columbia, Maryland, Ohio, Pennsylvania, Virginia, and West Virginia. UBI is the 10th largest insured depository organization in the District of Columbia, controlling deposits of approximately $1.1 billion in the District of Columbia, which represent 2.4 percent of the total deposits of insured depository institutions in that jurisdiction. In addition, UBI is the 18th largest insured depository organization in Maryland, controlling deposits of approximately $761.1 million in Maryland, which represent 0.6 percent of the total deposits of insured depository institutions in that state, and the 8th largest insured depository organization in Virginia, controlling deposits of approximately $4.1 billion in Virginia, which represent 1.5 percent of the total deposits of insured depository institutions in that state.

Cardinal, with consolidated assets of approximately $4.2 billion, is the 228th largest insured depository organization in the United States. Cardinal controls approximately $3.2 billion in consolidated deposits, which represent less than 1 percent of the total amount of deposits of insured depository institutions in the United States. Cardinal controls Cardinal Bank, which operates in the District of Columbia, Maryland, and Virginia. Cardinal is the 19th largest insured depository organization in the District of Columbia, controlling deposits of approximately $133.8 million in the District of Columbia, which represent 0.3 percent of the total deposits of insured depository institutions in that jurisdiction. In addition, Cardinal is the 43rd largest insured depository organization in Maryland, controlling deposits of approximately $188.6 million in Maryland, which represent 0.2 percent of the total deposits of insured depository institutions in that state, and the 10th largest insured depository organization in Virginia, controlling deposits of approximately $3. …

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